India’s leather and footwear export sector is set to benefit from new policy measures announced in the Union Budget 2026, aimed at improving competitiveness and easing operational constraints for manufacturers.
The Union Budget 2026 was presented in the Parliament of India (Lok Sabha) in New Delhi by Finance Minister Nirmala Sitharaman on February 1, 2026
The government has expanded duty-free import concessions under the Import of Goods at Concessional Rate (IGCR) scheme to include key inputs used in the manufacture of shoe uppers. In addition, the permitted export completion period for finished leather and textile products has been extended from six months to one year, providing exporters with greater flexibility and reduced working capital pressure.
Industry representatives have welcomed the changes, noting that they are particularly beneficial for small and medium-sized enterprises operating in value-added segments of the supply chain. The Council for Leather Exports (CLE) highlighted that leather component exports reached approximately US$222 million in 2024–25, with shoe uppers accounting for a growing share.
Exporters also expect the measures to complement recent trade agreements with markets including the UK and the EU, supporting export growth and job creation. Industry estimates suggest the reforms could generate between 200,000 and 300,000 new jobs across the leather and footwear manufacturing ecosystem.
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